1st Time Home Buyer Help

[1badazz_700r]

deffinetly get a home inspector before you committ to buying a place.

[1FST690]

I agree with all the tips, dont be afraid to lowball, Most people are into them for less than asking with the exception of the forclosures ect... Time on the market is a big one for me, the more time the less I offer. Another good tip is to drive by the house at different times of the day or go sit along the street its on at different times of the day to see what traffic, children playing, ect is like. Remember this is not a rental that you can give a 30 day notice and move out of, it is a HUGE commitment! You have to live there, how are the neighbors? How are their homes kept up? Try to think of day to day type of things to consider also. And as I said before dont be afraid to lowball especially right now! when I bought my house it was on the market for 75,000 by the time it was all said and done I paid 52,000 and got the sellers to pay my closing costs and give me a check for 4000 for new cabinets. Also, find youself a good realitor and not the one on the sign out front, they will be looking out for the seller/ themselves because they make more on if the house sells for more. You can also ask if they will take a 3% commision instead of a 6%, that could save ya some money. Fixed Rate is the ONLY way to go also! Home inspection, a must!

[NaturalRaptor]

Good tips! Thanks. 

[UncleBeaner]

i started typing but just call me ive been going thought this for a while now

[fireman5166]

Ask your mortgage company...
Are there any pre-payment penalties?
How long can I lock in a rate?
What are their mortgage origination fees?

If you go with a well-established bank (e.g. Bank of America), you don't have much to worry about.  Be sure to shop around a bit to find the best rate.

Like drunknuts said, get a home inspector.  It is worth the $300 or whatever.  Ensure that you make an offer on a house that is contingent on the home inspection.  The home inspector can find things that you can modify your offer with.  If something is really wrong with the house, you can back out of the deal and not lose your earnest money.

Ask your agent...
How long has the house been on the market?  Adjust your offer accordingly.
How much are similar houses selling for?
What are the property taxes?
A good agent should be able to lead you through the process and make you feel comfortable.

I can think of a ton more things that may or may not be important to you depending on where you want to live...
How is the commute?
How are the schools?
How close are businesses?  Bank?  Groceries?  Restaurants?

You've maybe already done this, but if you haven't already, go to http://money.cnn.com/real_estate/index.html or somewhere similar.  There are a lot of first time home buying tips.  Use mortgage calculators (e.g. http://cgi.money.cnn.com/tools/mortgagecalc/index.html ) to figure out how much your monthly payment will have to be.

Good luck.

yea what he said. oh and one more thing. take a drive at night a couple of times and see how the neighborhood is. peels might be lurking around. 

[Colorado700R]

And if the place you find has full grown trees in the yard, make sure the seller has the foundation checked and the sewer main rooted out.


My finished basement flooded this weekend becuase of tree roots in the main 

[Peelz]

yea what he said. oh and one more thing. take a drive at night a couple of times and see how the neighborhood is. peels might be lurking around. 

WTF did I do to you?

I bring property values up. I provide a detrimental service to the neighborhood..

[Colorado700R]

yea what he said. oh and one more thing. take a drive at night a couple of times and see how the neighborhood is. peels might be lurking around. 

WTF did I do to you?

I bring property values up. I provide a detrimental service to the neighborhood..

Peel's definately brings up property value.  He burns down Trailer Parks !!!

[Peelz]

Aaron got the joke.

[Kenneth]

So.. I've found a place I'm serious about buying. But I'm really unsure where to start. I talked to my bank a bit ago and got a home loan application. And have an appointment with them on Thursday.

I'm not one for money stuff or whatever.
What kind of questions do I need to ask in the pre-approval process?
What kind of questions should be asked once I work with the realtor in purchasing a home etc?

-Randy

I haven't read the whole thread but I have one story I like to share below...
Two years ago the bank I did all my dealings with wanted 8% for my current house (interest was high then) I told them I'll think about it. I went to another bank 1 mile down the road and asked for a nice loan officer (not joking)  I was introduced to a lady and she needed 3 things: *Drivers License  *Social  *3 Years of taxes.... To make a long story short the interest went from 8% to 5.75% in 1 hour. 30 days later I had keys.

Making offers... Depending on who your agent is depends on how good of a deal your going to get. If your agent encourages you to pay the sellers asking price or discourages you not to offer a lower amount on any house you need to get a different agent. Do not allow your agent to know how much you like the house. They will play with your emotions when it comes time to sign the contract.  I purchased my house 23,000.00 less then they were advertising. Most agents would laugh at your face when you make such a low offer my agent fought hard for me. For example he found a lot of small things wrong with the house (trim not lining up all the way in certain rooms by a hair honestly, dry Rolling paint, outside trim faded a little more in the back then front, etc)he got a few quotes from outside contractors and sent it with my offer and they took the bait.

[Flynbyu]

Where do I start.

I dislike realtors. Realtors are leeches. They want 6-10% of something they don't own. With that being said, it would be best to know someone that is a realtor. Finding a good one is tough.

If you can find a new home, that would be best. New homes will have warranties (structural), and better financing options. Financing is based on the appraisal. The appraisal is based on comparable homes that have sold within the last 90 days within a 3-5 mile radius that are equal in size. This really helps if there are other new homes in the area.

If you are in the market pre-owned home, You can buy CHEAP right now. Values have went down, so if they are asking for appraisal value, you should be able to buy for thousands less. Be sure to discount the home if it needs carpet, or repairs to adjust your value.

Closing costs: Sellers will normally pay half the closing costs (half the title insurance, appraisal fees, flood certification etc.), excluding origination fee. If the survey is fairly new, you won't need a new survey. Some states require an inspection, and that would be figured into the closing costs. It is very wise to hire an inspector if you're buying a pre-owned home. This usually costs $200 or less.

Financing: If it's your first time out, you'll more than likely get an FHA loan. There is 100% financing out there, but when I first bought my home they required 3-5% down of the purchase price of the home. There are certain things that are negotiable. I would REFUSE to pay an origination fee. Some places charge you 1-2% depending on the sale price of the home just to do your loan papers. It's a bullshit fee, and there are companies that will do it without this fee.

Payment....There are things that are figured into your payment that will make your payment go up. When you get your "good faith estimate" from your lender, make sure it includes approximate insurance, property taxes, and PMI. PMI is private mortgage insurance. If you are financing above 80% Loan to value on your home, you'll have to pay this. This is insurance placed on the loan if you default by the lender. After you get a few years on the new loan, generally you can have the home appraised again to show the new value, and if your balance is lower than 80% of the appraisal, the lender will remove the PMI. Your homeowners insurance and your property taxes will also be in your payment. It's collected within your payment, and accumulated in escrow and paid every year. If you have a deficiency in escrow, you'll have to make up the difference, or pay a slightly higher payment to make up for the deficiency. Usually this occurs if your insurance goes up, etc..

The advantages of owning your home are tremendous. You'll be able to write off your closing costs, and intrest paid every year on your home at tax time, not to mention your home should appreciate!!!

If you have any questions, give me a call.

~Brian

[vern burny]

Krandall,

First, you live in Minnesota, if the disclaimer indicates there has never been water in the basement they are lieing or the house is less than a year old.  My realtor told me that one.

Look at the age of the appliances including the furnace, water heater and water softner. Age of roof is also very important.

Look at the age of the house.  In my opinion older houses were built solid but come with alot of other things to consider like electrical, plumbing, insulation, etc..  If you want just want to move in and be done newer can be nice.

If anything looks brand new like it was installed or updated just to sell the home it is probably not the best quality.  This is stuff like carpet, light fixtures and cubards.

There is alot of other stuff to but I should probably be working.  

[Pldbryan]

Another good source of some useful information is to look at Zillow.com  it will give you a rough estimate of what the house is worth by comparing it to "similar" homes in the are that have sold recently.  Obviously it is not exact but it averages cost/sq ft, lot size etc of homes in the area.  It will also let you look up the tax history and previous sales history of the house. 
Seeing what they paid for the house can help you determine how much to offer, especially if looking for a deal.  It also shows you other houses in the area that are for sale that you can compare against. 

Realestate agents do suck up $ but a good one can help you buy it cheaper and easier.  I have bought and sold 2 houses with and without an agent and I prefer to use one if they are decent, especially if buying a house.  My wife is an agent and many times if the seller has it listed for a long time or really needs to move it the selling agent will "confide" in another agent that they would accept a much lower price becuase they want it sold and do not get paid until it sells.  That would not be the agent I would want working for me but there are many out there like that.

Get an agent that you trust and knows what they are doing, anyone who has used a good agent and likes them will always be trying to pimp them to all of their friends so it should not be to hard.

[fireman5166]

yea what he said. oh and one more thing. take a drive at night a couple of times and see how the neighborhood is. peels might be lurking around. 

WTF did I do to you?

I bring property values up. I provide a detrimental service to the neighborhood..

I just heard about your reputation.  :grin_nod: (sorry peels)

[Peelz]

yea what he said. oh and one more thing. take a drive at night a couple of times and see how the neighborhood is. peels might be lurking around. 

WTF did I do to you?

I bring property values up. I provide a detrimental service to the neighborhood..

I just heard about your reputation.  :grin_nod: (sorry peels)

  Dammit!